The Effect of High School Exit Exams on Graduation, Employment, Wages, and Incarceration

Working Paper: NBER ID: w19182

Authors: Olesya Baker; Kevin Lang

Abstract: We evaluate the effects of high school exit exams on high school graduation, incarceration, employment and wages. We construct a state/graduation-cohort dataset using the Current Population Survey, Census and information on exit exams. We find relatively modest effects of high school exit exams except on incarceration. Exams assessing academic skills below the high school level have little effect. However, more challenging standards-based exams reduce graduation and increase incarceration rates. About half the reduction in graduation rates is offset by increased GED receipt. We find no consistent effects of exit exams on employment or the distribution of wages.

Keywords: high school exit exams; graduation rates; incarceration; employment; wages

JEL Codes: I21; I24; I28; J24; J3


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
high school exit exams (I21)decline in graduation rates (I21)
standards-based exams from the ground up (C90)decline in graduation rates (I21)
standards-based exams (C87)increase in incarceration rates (K14)
minimum competency exams (A21)negligible effects on graduation rates (D29)
high school exit exams (I21)no consistent effects on employment outcomes (J68)
high school exit exams (I21)no consistent effects on wage distributions (D39)

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